Grogg v. General Motors Corp.

72 F.R.D. 523, 14 Fair Empl. Prac. Cas. (BNA) 724, 24 Fed. R. Serv. 2d 293, 1976 U.S. Dist. LEXIS 13612, 12 Empl. Prac. Dec. (CCH) 11,204
CourtDistrict Court, S.D. New York
DecidedAugust 17, 1976
DocketNo. 73 Civ. 63 (KTD)
StatusPublished
Cited by26 cases

This text of 72 F.R.D. 523 (Grogg v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grogg v. General Motors Corp., 72 F.R.D. 523, 14 Fair Empl. Prac. Cas. (BNA) 724, 24 Fed. R. Serv. 2d 293, 1976 U.S. Dist. LEXIS 13612, 12 Empl. Prac. Dec. (CCH) 11,204 (S.D.N.Y. 1976).

Opinion

OPINION

KEVIN THOMAS DUFFY, District Judge.

This is an action by several individual female employees of General Motors Corp. (“GM”) and by the International Union of Electrical Radio and Machine workers, AFL-CIO-CLC, (“IUE”) and its locals which represent the individuals against GM for alleged violations of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 20Q0e. Plaintiffs claim that the provisions of GM’s employee disability benefit program offend Title VII in the following three respects. First, payments for disabilities arising from pregnancy or childbirth are limited to six weeks; whereas, other disabilities are compensated for by 52 weeks of disability payments. Second, GM has or had a mandatory unpaid leave requirement for women seven months pregnant. Third, defendant allegedly refuses to pay sickness and accident benefits to female employees who are disabled as a result of surgical sterilization.

[527]*527The defendant has moved (1) to dismiss the action as a class action or (2) for definition of the class and (3) to amend its answer to assert an affirmative defense and a counterclaim against the plaintiff Union and its locals.

Because the outcome of the motion to amend the answer will have an impact on the issues raised by the “class” motions, I will dispose of the motion to amend first. The proposed amended answer includes an affirmative defense of “good faith” based in part on section 713(b) of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-12(b), which provides in pertinent part:

“In any action or proceeding based on any alleged unlawful employment practice, no person shall be subject to any liability or punishment for or on account of (1) the commission by such person of an unlawful employment practice if he pleads and proves that the act or omission complained of was in good faith, in conformity with, and in reliance on any written interpretation or opinion of the Commission, . . . . Such a defense, if established, shall be a bar to the action or proceeding, notwithstanding that (A) after such act or omission, such interpretation or opinion is modified or rescinded or is determined by judicial authority to be invalid or of no legal effect . . . .”

Defendant claims that it relied on certain opinion letters issued by the EEOC in 1966. It also claims reliance on state disability laws, see, e. g., N.Y. Workmen’s Comp.Law, § 205(3) (McKinney 1965).

Plaintiffs oppose this defense both on its theory and on the facts. They argue that intent need not be an element of the offense charged. See Kober v. Westinghouse Elec. Corp., 325 F.Supp. 467 (W.D.Pa.1971), aff’d, 480 F.2d 240 (3d Cir. 1973). Moreover, they challenge the relevance and weight of, as well as defendant’s right to rely on, the 1966 opinions. See CCHEPG § 17.304.43 (one of the letters allegedly relied on); 35 Fed.Reg. 238 (Dec. 9, 1970) (an EEOC policy statement narrowing the definition of a “written interpretation or opinion of the Commission” for purposes of § 713(b)); EEOC Decision 71-1474, 3 EPG ¶ 6221, 3 FEP 588 (Mar. 19, 1971) (describing the treatment of pregnancy as a sickness for purposes of sickness and accident benefits).

Plaintiffs’ arguments appear to me to be addressed to the merits of the defense and accordingly are not relevant on this motion. Nyscoseal, Inc. v. Parke, Davis & Co., 28 F.R.D. 24 (S.D.N.Y.1961). Although an amendment may be denied if the matter sought to be asserted is clearly frivolous, I cannot say at this time that such is the case here. See Reines Distributors, Inc. v. Admiral Corp., 39 F.R.D. 39 (S.D.N.Y. 1963). While defendant may have a heavy burden on the proof of this defense, I will not foreclose the opportunity at this time. Therefore, in accordance with Rule 15(a), Fed.R.Civ.P., and its policy favoring liberality in the amendment of pleadings, the motion to amend the answer to assert an affirmative defense is granted. See Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962).

The second amendment for which leave is sought relates to a proposed counterclaim against the plaintiff Union. Rule 13(f), Fed.R.Civ.P. The gist-of the counterclaim is that if the defendant is found liable for money damages, it seeks indemnification or contribution from the Union as co-signator of the collective bargaining agreement which contains the allegedly unlawful health insurance provisions.

Plaintiffs oppose this amendment on several grounds. Arguing the facts of the case, plaintiffs maintain that it is beyond dispute that the plaintiff unions sought an end to defendant’s alleged discrimination. Thus, they argue, the unions cannot be held liable for merely signing a collective bargaining agreement containing provisions they were unable to defeat. See EEOC Decision No. 70-112, CCH EPG ¶ 6108 (Jan. 19,1970). This argument goes directly to the merits of defendant’s proposed counterclaim and is not properly before me on-this motion. See Nyscoseal, Inc. v. Parke, Davis & Co., 28 F.R.D. 24 (S.D.N.Y.1961).

[528]*528Plaintiffs also argue that if the counterclaim is asserted under Title VII (1) the statute does not provide for contribution and (2) the counterclaim is jurisdictionally defective for failure of the defendant to file a claim with the EEOC, 42 U.S.C. §§ 2000e-5(e), 2000e-5(f)(l). On the other hand, if the counterclaim is premised on a joint tortfeasor theory of liability, plaintiffs argue that no such liability exists on the facts or the law. Finally, plaintiffs argue that any claim by defendant for indemnification is not yet ripe since defendant’s liability has not yet been determined.

There is ample authority to the effect that a counterclaim of the type proposed by defendant may be asserted. See, e. g., Lynch v. Sperry Rand Corp., 62 F.R.D. 78 (S.D.N.Y.1973); Gilbert v. General Electric Co., 59 F.R.D. 267 (E.D.Va.1973); AFL-CIO v. Illinois Bell Telephone Co., 73 C 959 (N.D.Ill., Oct. 25, 1973); Blanton v. Southern Bell Telephone & Telegraph Co., 49 F.R.D. 162 (N.D.Ga.1970); Bowe v. Colgate Palmolive Co., 272 F.Supp. 332 (S.D. Ind.1967), modified on other grounds, 416 F.2d 711 (7th Cir. 1969). See also, Evans v. Sheraton Park Hotel, 164 U.S.App.D.C. 86, 503 F.2d 177 (1974); Myers v. Gilman Paper Co., 392 F.Supp. 413 (S.D.Ga.1975). The counterclaims asserted in Gilbert and AFL-CIO were, apparently, almost identical to that proposed by this motion. In fact ¶ 24 of plaintiffs’ complaint suggests that the plaintiff union and its locals may be subject to suit by female employees for failure to correct the allegedly unlawful insurance program which limits pregnancy and childbirth disability benefits to six weeks.

Although Gilbert, Bowe and Blanton found that a failure to file EEOC charges against the union precluded a counterclaim on a Title VII theory, Gilbert, Lynch and Blanton

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72 F.R.D. 523, 14 Fair Empl. Prac. Cas. (BNA) 724, 24 Fed. R. Serv. 2d 293, 1976 U.S. Dist. LEXIS 13612, 12 Empl. Prac. Dec. (CCH) 11,204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grogg-v-general-motors-corp-nysd-1976.